Inside Money Today

Lendinero's blog on Growing Your Business

When Do ISOs Need to Submit More Bank Statements or Merchant Processing Statements?

When Do ISOs Need to Submit More Bank Statements or Merchant Processing Statements?

 Traditionally, speaking 4 months of bank statements at the time of loan submission will allow for most lenders to provide a credit decision. When do you need to get more bank statements or merchant processing statements? 1. If the current bank statements have a lot of transfers from a merchant processor, than merchant processing statements will be necessary because most of the earnings are coming from credit card revenues. 2. If the current bank statements have a lot of transfers or incoming ACHs or wires, than additional bank statements from other accounts are needed. In some cases, business owners have an operating account, a payroll account, and other accounts. If there is excessive transfers flowing into the primary statements or operating account than those statements will be needed. 3. If the current business owner has a seasonal trend and you are trying to get a merchant a loan during their slow season than you may need the last 12 months of bank statements to demonstrate that the previous year at the same time the business experienced the same trend, known as a seasonal trend. These are the only times when you will need additional statements. Other than that 4 months of bank statements will do the job.

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